The break-even volume for a product is 10,000 units,the fixed cost is $10,000,and variable cost is $1 per unit.What is the required selling price per unit?

Question

Quizplus · Accepted Answer

The break-even point is where total costs equal total revenue. The formula to calculate the break-even point in units is Fixed Costs / (Selling Price per Unit - Variable Cost per Unit). Given a break-even volume of 10,000 units, fixed costs of $10,000, and a variable cost of $1 per unit, we can rearrange the formula to solve for the selling price per unit: $10,000 / 10,000 units + $1 = $2.00.

The Break-Even Volume for a Product Is 10,000 Units,the Fixed